G. MURUGESAN & BROS. versus C.I.T. , MADRAS

G. MURUGESAN & BROS. versus C.I.T. , MADRAS

For the assessment years 1957-58 and 1958-59, the assessee was rightly assessed as an 'Association of Persons' based on its own admission. For the years 1959-60 to 1962-63, in the absence of volition and management, and upon their statement that they no longer functioned as such, assessment should be as individuals, not as an Association of Persons.

Parties
Appellant: G. Murugesan & Bros.; Respondent: C.I.T., Madras
Jurisdiction
India
Judgment Date
08 February 1973
Procedural Posture
Civil Appeal / Supreme Court Appeal by Certificate From High Court Judgment in Tax Case No. 308 of 1964
Outcome
Civil Appeals Nos. 685 & 686 of 1970 dismissed (no order as to costs). Civil Appeals Nos. 687-690 of 1970 allowed with costs.
Legal Topics
Income Tax – Assessment of Association of Persons Vs Individuals, Status for Tax Purposes, Dividend Income, Partition of Property
Taxation Law Income Tax – Assessment of Association of Persons Vs Individuals Status for Tax Purposes Dividend Income Partition of Property

Case Brief

Summary, issues, holding and outcome

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Parties

G. Murugesan & Bros.

Appellant

C.I.T., Madras

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal by Certificate From High Court Judgment in Tax Case No. 308 of 1964

Legal Issues

  1. 1 Whether on the facts and circumstances, the Department was justified in assessing the assessee in the status of an Association of Persons for the assessment years in question

Ratio Decidendi

For the assessment years 1957-58 and 1958-59, the assessee was rightly assessed as an 'Association of Persons' based on its own admission. For the years 1959-60 to 1962-63, in the absence of volition and management, and upon their statement that they no longer functioned as such, assessment should be as individuals, not as an Association of Persons.

Court Disposition

Civil Appeals Nos. 685 & 686 of 1970 dismissed (no order as to costs). Civil Appeals Nos. 687-690 of 1970 allowed with costs.

Orders

  • The answer given by the High Court in Civil Appeals Nos. 687-690 of 1970 is discharged and in its place, the question is answered in the negative and in favour of the assessee.